OTHERS HANDAL ENERGY BERHAD (FORMERLY KNOWN AS HANDAL RESOURCES BERHAD) - AWARD OF CONTRACT

HANDAL ENERGY BERHAD

Type Announcement
Subject OTHERS
Description
HANDAL ENERGY BERHAD (FORMERLY KNOWN AS HANDAL RESOURCES BERHAD) 
- AWARD OF CONTRACT

1. INTRODUCTION

 

Handal Energy Berhad (formerly known as Handal Resources Berhad) (“Handal” or the “Company”) is pleased to announce that its wholly-owned subsidiary, Handal Cranes Sdn Bhd (formerly known as Handal Offshore Services Sdn Bhd) (“Handal Cranes”), has been awarded a contract for the Provision of Offshore Crane Operations and Maintenance Services for SSB/SSPC (“Contract”) from Sarawak Shell Berhad (“SSB”) and Sabah Shell Petroleum Company Limited (“SSPC”). 

 

 

2. DETAILS ON THE CONTRACT

 

The Contract entails the provision of operations, maintenance, repair services and provision of manpower services for a total of 29 offshore cranes under SSB and SSPC located off the waters of Sarawak and Sabah. 

 

The duration of the Contract is for a period of two (2) years, commencing from 15 October 2019, with an extension option of one (1) year.

 

The Contract does not have a specified value as it is on a “call-out” basis whereby the work orders will be awarded at the discretion of SSB/SSPC based on its activity schedule and maintenance and repair schedule throughout the duration of the Contract.

 

 

3. FINANCIAL EFFECTS

 

The Contract will not have any effect on the share capital and shareholding structure of the Company. 

 

The Contract is expected to contribute positively to the earnings of Handal and its subsidiaries (“Group”) for the financial year ending (“FYE”) 30 June 2020 and subsequently until the expiry of the Contract. The Contract is not expected to have any material effect on the net assets of Group for the FYE 30 June 2020. 

 

 

4. RISKS IN RELATION TO THE CONTRACT

 

The Group foresees, amongst others, the risk factors affecting the Contract includes delays in issuing of work orders by SSB/SSPC. The execution of services under the Contract depends on work orders to be issued by SSB/SSPC from time to time. Hence, any delay in issuing work orders will lead to delay in the recognition of revenue from the Contract.

 

 

5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

 

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of Handal has any direct or indirect interest in the Contract.

 

 

6. STATEMENT BY DIRECTORS

 

The Board of Directors of the Company is of the opinion that the Contract is in the ordinary course of business and is in best interest of the Company.

 

 

This announcement is dated 30 September 2019.






Announcement Info

Company Name HANDAL ENERGY BERHAD
Stock Name HANDAL
Date Announced 30 Sep 2019
Category General Announcement for PLC
Reference Number GA1-30092019-00015